Temasek’s Fullerton to tokenize private equity fund on ADDX

A rendering of blockchain technology. Photo by Shubham Dhage on UnsplashA rendering of blockchain technology. Photo by Shubham Dhage on Unsplash

Temasek subsidiary Fullerton Fund Management plans to list a tokenized version of a private equity fund-of-funds on ADDX.

The Fullerton Optimised Alpha Fund will be tokenized and listed on Singapore Exchange (SGX)-backed private market exchange ADDX, according to a press release Wednesday. The fund is a private equity fund-of-funds from Fullerton Fund Management, which is a subsidiary of Singapore state-owned investment company Temasek Holdings, the release said.

Accredited investors on ADDX can access the fund with a minimum US$10,000 investment, instead of the usual US$250,000 needed via traditional channels, the release said; quarterly gated redemptions are available to investors. The exchange’s platform automates processes for issuance, custody and distribution for private market products, using blockchain and smart-contract technology.

Fund-of-Funds

Mark Yuen, chief business development officer at Fullerton, said the ADDX platform allows his company to provide wider access and a broader base of investors for its funds.

The Fullerton Optimised Alpha Fund will invest in six to eight private equity and private credit funds, with a focus on blue-chip managers who have a proven track record, the release said, adding the assets will be geographically diversified across North America, Europe and Asia as well as by a range of themes. The themes will include new economy, Covid-recovery and ESG (environment, social and governance). The fund is a closed-end fund targeting returns of 8 percent to 12 percent a year over its seven-year life, the release said.

Since being licensed by the Monetary Authority of Singapore (MAS) as a private market exchange in early 2020, ADDX has listed 30 deals on the platform, the release said. The deals have included Hamilton Lane, Investcorp, UOB, CGS-CIMB and entities owned by Temasek, such as Mapletree, Azalea and SeaTown. ADDX hosts asset classes including private equity, venture capital, private debt, real estate, hedge funds, cryptocurrency-exposed funds and structured products, the release said.

The exchange, which is owned and operated by ICHX Tech, raised $50 million in a series A round at the beginning of 2021. Its investors include SGX, Temasek subsidiary Heliconia Capital, and Japanese investors JIC Venture Growth Investments (JIC-VGI) and the Development Bank of Japan (DBJ). Other shareholders include South Korea’s Hanwha Asset Management, Japan’s Tokai Tokyo Financial Holdings and Thailand’s Kiatnakin Phatra Financial Group.

This item was originally published on finews.asia.